Complete Outsource Workforce - Possible AND Profitable?

18 replies
Warriors,

As I gain more clients for my Web Design branch of my business, I've been thinking about the possibility of outsourcing as a way to move from "self-employed" to "business owner" - Outsourcing the services leaving me to concentrate on building and expanding the business instead of providing the actual services.

The services I'd be looking at outsourcing would be -
Web Design (Wordpress), SEO, Graphic Design (Logos & Print Design)

I know it's certainly workable to have a complete outsource team, but is it profitable? I thought I'd ask you Warriors as I'm sure there must be some of you guys that make a full-time income this way...

Any advice and feedback is much welcomed!

Regards, Malcolm
#complete #outsource #profitable #workforce
  • Profile picture of the author garyp
    @MalBryc

    I'd be quite interested to hear what you get back - as I'm in the same boat as you.

    Gary
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  • Profile picture of the author BurtL
    Originally Posted by MalBryc View Post

    Warriors,

    The services I'd be looking at outsourcing would be -
    Web Design (Wordpress), SEO, Graphic Design (Logos & Print Design)

    I know it's certainly workable to have a complete outsource team, but is it profitable? I thought I'd ask you Warriors as I'm sure there must be some of you guys that make a full-time income this way...
    Profitability would depend on your fees for clients vs what you pay your team. But keep in mind building a team of talented outsourcers will take time don't expect to build a solid team right away.
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    • Profile picture of the author jameer
      Outsourcing or getting a freelancer is itself a great skill and especially setting deadlines.
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    • Profile picture of the author MalBryc
      Originally Posted by Screen Text View Post

      Profitability would depend on your fees for clients vs what you pay your team. But keep in mind building a team of talented outsourcers will take time don't expect to build a solid team right away.
      Yes, I'd expect that it would take time for me to put together a talented team and quality costs money.

      Thanks for your feedback...
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      "Before you save the world. Save yourself first." ~ Mike Litman

      twitter.com/MalBryc - My twitter, why not @MalBryc me?
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  • Profile picture of the author Adrian John
    Outsource it;s the way to go.Focus on getting more clients on the line and leave the fulfilling the service to a team of outsources you manage.This way your your clients data base will increase faster, your profits will increase(not per client, but on all of them) and now you have 10 times more clients to up-sell other services.
    most of the services can be outsource here on WF if you do an little research and fins reliable suppliers.
    I would add Mobile Website Design to the list of services too if I were you , it's in the same line.

    Good luck in your journey.
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  • Profile picture of the author MaxwellB
    It's absolutely profitable but your sales have to obviously generate a profit while completely outsourcing and if your fees are not high enough because your scared to charge what your services are worth then no it won't be profitable.

    So find providers of those services, figure out how much it would cost to outsource what you sell....and add whatever margin you want so you can make money.
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  • Profile picture of the author Tier3Marketing
    It's a great business model. That's what I've done for the past 3 years now. It's all about hiring the right talent. Of course you'll end up hiring deadbeats here and there that can't even show up for work. But when you find those great employees overseas you gotta treat them good and make sure they are happy. You are exactly right by wanting to focus on growing your business and not doing the design and services yourself. You can either be a brick layer or you can be the architect. I choose to be the architect and it sounds like you are seeing the big picture.
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    • Profile picture of the author Jason Morris
      Your in a good position Mal as you have the technical skill to vet outsources for your services.
      Makes it a whole lot easier. I have had both success and failure with outsourcing. The key is to learn from when it goes wrong and don't make the same mistakes again!
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  • Profile picture of the author webcosmo
    It`s possible, just hard to find reliable people for the job.
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  • Originally Posted by MalBryc View Post

    Warriors,

    I know it's certainly workable to have a complete outsource team, but is it profitable? I thought I'd ask you Warriors as I'm sure there must be some of you guys that make a full-time income this way...

    Any advice and feedback is much welcomed!

    Regards, Malcolm
    Outsourcing can definitely be profitable. In fact you find a lot of outsourcing success stories out there of business owners who were able to expand their business and build more businesses. The trick is to see outsourcing as an investment in your business. You have to take time to find good talent, you have to pay your people well and treat them properly; you have to learn to maximize the potential of your team without overwhelming them.
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    • Profile picture of the author MalBryc
      Originally Posted by Adrian John View Post

      most of the services can be outsource here on WF if you do an little research and fins reliable suppliers.I would add Mobile Website Design to the list of services too if I were you , it's in the same line. Good luck in your journey.
      Thanks for your advice and well wishes!

      Originally Posted by MaxwellB View Post

      So find providers of those services, figure out how much it would cost to outsource what you sell....and add whatever margin you want so you can make money.
      Yep, I agree - It's about margins.

      Originally Posted by Tier3Marketing View Post

      It's all about hiring the right talent. You are exactly right by wanting to focus on growing your business and not doing the design and services yourself. You can either be a brick layer or you can be the architect. I choose to be the architect and it sounds like you are seeing the big picture.
      Thanks for the encouragement!

      Originally Posted by Jason Morris View Post

      Your in a good position Mal as you have the technical skill to vet outsources for your services.
      Yes, I thought that as well - I can act as Quality Control/Assurance.

      Originally Posted by John Jonas Phil VA View Post

      Outsourcing can definitely be profitable. In fact you find a lot of outsourcing success stories out there of business owners who were able to expand their business and build more businesses. The trick is to see outsourcing as an investment in your business. You have to take time to find good talent, you have to pay your people well and treat them properly; you have to learn to maximize the potential of your team without overwhelming them.
      Thanks, I see it also as an investment for my business - I'll take a look at the link you included too! The Philippines is a country I'd look at outsourcing too - gotta be loyal to the country of my mother!
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      twitter.com/MalBryc - My twitter, why not @MalBryc me?
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      • Profile picture of the author Jack Bastide
        One of the hardest things about Outsourcing
        is finding reliable suppliers

        I can't tell you how many times I hired a student in
        Pakistan or India or the Philippines who just disappeared
        in the middle of the job

        I finally found a solution. a U.S. based company that has a
        full time staff on duty.

        They do Mobile Websites, Regular Websites, SEO, SMS
        marketing and other stuff.

        And the quality of their work is 2nd to none

        they even have have sales training on how to sell their
        products as well as how to recruit a sales force to sell for
        you

        I might be able to talk to them to see if they would like to
        work with some Warriors. Let me know if there is some
        interest

        Jack
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    • Profile picture of the author Huskerdarren
      Originally Posted by John Jonas Phil VA View Post

      Outsourcing can definitely be profitable. In fact you find a lot of outsourcing success stories out there of business owners who were able to expand their business and build more businesses. The trick is to see outsourcing as an investment in your business. You have to take time to find good talent, you have to pay your people well and treat them properly; you have to learn to maximize the potential of your team without overwhelming them.
      Agree with that. Too many people think there's top shelf talent available across the ocean for 29 cents an hour. Make the investment into your people and then charge prices that will support your profit and all operational costs.
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  • Profile picture of the author Huskerdarren
    I think the first step is to develop a system of doing things that is predictable and repeatable. Then as you go along, it can be fine tuned. I'd first hire a virtual assistant, probably someone local, like a college educated, tech savvy, stay-at-home mom to act as a project manager. Then you layout the scope of the project and let the VA run with it.

    Build up that relationship so you have trust in their competency and ability to complete projects timely and with excellence. Manage the manager so to speak. My wife is a VA in another industry and she's vital to the day to day of her boss's company.

    The book you want to read is EMyth Manager by Michael Gerber.
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  • Profile picture of the author spesialis
    Be careful. Outsourcing is very addictive.

    Outsource your next web design job. See if you like the profit margin.
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  • Profile picture of the author FakeItTilYouMakeIt
    Banned
    I have a mostly outsourced team and I've been very happy with that set up. We do local SEO for American companies but I have contractors from around the world. It was a lot of trial and error to set things up the right way (the way where it is no a nightmare and makes me a nice profit.) Here are my tips:

    1) Consider time zones. Know that if you go across the globe you will be up at 3am talking to your contractors.

    2) Consider language barriers. Can you communicate effectively with your contractor? How much is enough? Make it task specific: my content contractors need native English while web researchers/designers don't need that level.

    3) Consider the country/culture. Might seem like a non issue but as a woman there were contractors that didn't take me seriously for cultural reasons. There are also different cultural standards of what "on time" means. Example: My culture, Mexican culture is very laid back when it comes to being on time, starting on time, deadlines. My local contractors have a hard time adjusting sometimes to the more rigid American pace.

    4) Consider how you will monitor progress. We use Hubstaff, it takes screen shots and monitors key strokes and mouse clicks. Its tempting to get distracted when you are working from home I also do lots of checklists with clear deadlines.

    My number one tip for US based entrepreneurs that are interested in outsourcing is to consider candidates from the Caribbean countries. I've had great luck with contractors from Jamaica, Haiti and Trinidad. Good grasp of technology, excellent English, good internet access/speed (trust me that's crucial) and still very affordable labor. You can afford to pay them what is a very nice wage for where they are living and still save a lot on labor costs. Because I do believe that outsourced workers should make a good wage for their work. Keeps them loyal and it's the right thing to do. HTH
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  • Profile picture of the author mjbmedia
    Is it profitable? Hey Mal that's up to you, you set the prices.
    understand the metrics, all the costs involved including having spare ££££ for the times you get let down whilst building up the loyal team, there will be times you HAVE to get something done now due to being let down by an outsourcer and you WILL have to pay over the odds to acheive that and continue the great customer service you will be delivering, so those sort of things need to be factored in too , plus the associated costs (time especially) of finding, developing and trusting each outsourcer.
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    • Profile picture of the author MalBryc
      Originally Posted by Jack Bastide View Post

      One of the hardest things about Outsourcing
      is finding reliable suppliers
      Thanks Jack - I agree that finding quality outsourcers will be key to what I want to achieve.

      Originally Posted by Huskerdarren View Post

      The book you want to read is EMyth Manager by Michael Gerber.
      I'll give that a read! Thanks for the heads up.

      Originally Posted by FakeItTilYouMakeIt View Post

      I have a mostly outsourced team and I've been very happy with that set up. We do local SEO for American companies but I have contractors from around the world. It was a lot of trial and error to set things up the right way (the way where it is no a nightmare and makes me a nice profit.) Here are my tips:
      1) Consider time zones. 2) Consider language barriers.
      3) Consider the country/culture. 4) Consider how you will monitor progress.
      Thanks for your tips!

      Originally Posted by mjbmedia View Post

      Is it profitable? Hey Mal that's up to you, you set the prices.
      Yes, I'll have to work out and keep and eye on my margins.

      Again, thanks so far Warriors!
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      "Before you save the world. Save yourself first." ~ Mike Litman

      twitter.com/MalBryc - My twitter, why not @MalBryc me?
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